Maruti Suzuki IndiaEQMARUTI0.81% was among the top gainers on the Sensex, rising 2.6% to 1,584.00 rupees after brokerage CLSA raised its 12-month price target to 1,915.00 rupees from 1,270.00 rupees. CLSA said the company's earnings outlook is improving and it forecast that demand for cars would rise thanks to lower interest rates.

Oil & Natural Gas Corp.EQONGC0.66% added 1.0% to close at 287.70 rupees on hopes it will benefit from a government panel's recommendation to scrap the controlled natural gas pricing mechanism.

The market focus will next shift to the Reserve Bank of India and a widely expected cut in key interest rates at its policy review meeting on Jan. 29. State Bank of India Chairman Pratip Chaudhuri said he expects the central bank to cut its key policy rate by half a percentage point.

While investors may welcome the cut, inflationary pressures remain a concern, said Manuj Oberoi, a banking analyst at brokerage Nirmal Bank.

The RBI last lowered its key rate by 0.50 percentage point in April 2012 to 8.0%.

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